rushendra tarte project in postal

8/14/2019 Rushendra Tarte Project in POSTAL

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CURRENT SCENARIO OF POSTAL INVESTMENT

PROJECT SUBMITTED TO NIS ACADEMY,

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE

ADVANCE DIPLOMA IN MANAGEMENT AND APPLIED SKILLS

Name: Registration No.:

Mr. Rushendra S. Tarte R14308090294

Name of the Guide

Mrs. Rajlaxmi R.Bhosale.

The NIS Academy, Aurangabad.

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CURRENT SCENARIO OF POSTAL INVESTMENT

PROJECT SUBMITTED TO NIS ACADEMY,

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE

ADVANCE DIPLOMA IN MANAGEMENT AND APPLIED SKILLS

Mr. Rushendra S. Tarte

Name of the Guide

Mrs. Rajlaxmi R.Bhosale.


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Date: 04/03/2009 Registration No._______________

CERTIFICATE

Certified that the project CURRENT SCENARIO OF POSTAL INVESTMENT is

work done byMr. Rushendra S. Tarte during the period of his/her study under my

guidance for the partial fulfilment of Advance Diploma in Management and Applied

Skill/ Post Graduate Diploma in Applied Management.

Signature of the Guide Signature of the Director

Name: Ms. Rajlaxmi Bhosale Name: Mr.Ganesh Salunke

Place: Aurangabad.

Date: 04/03/2009. Official Address with Seal:


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ACKNOWLEDGEMENT

Any research is never an individual effort. It is contributory efforts of many

hearts, hands and brains. I sincerely feel that the credit of the project work could not

be narrowed down to only one individual. As the whole work is the outcome of

integrated efforts of all those concerned with this, through whose cooperation and

effective guidance I would achieve its completion.

I take this opportunity to express my deep sense of obligation to management

Post Office , Aurangabad City for their kind permission to undertake this study in

their organization and also extending to me all the guidance and help in completing

the project work successfully. My special thanks to the Senior Post Master for

initiating me in this study and extending their cooperation in providing their related

information.

It extends my heart-felt gratitude to Mrs. Rajlaxmi Bhosale (project head) and

Mr. Ganesh Salunke (director) The NIS Academy, Aurangabad for their timely

assistance. I will always be obliged to them whose love and blessings have been a

source of inspiration and courage to undertake the studies in pursuit of knowledgeand to face the vicissitudes of eventful life.

THANKING YOU

YOURS SINCERELY


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PREFACE

Every student of F.Y.MBA is required to undertake a project and submit thesame for the partial fulfillment of the course. It is also very necessary to acquirepractical knowledge on the specialized field against theoretical base.

The topic I have TO STUDY THE CURRENT SCENARIO OF POSTALINVESTMENT. The aim of the service provided is to satisfy target customers needand wants. Understanding customers buying and knowing customer is never simple.

People can be initiators, influencers, deciders, buyers or users. PostalInvestment must also examine buyers level of involvement and the number ofbrands that are actually available in market. The report consists of tables andgraphical presentations of the data gathered by the survey. In report I havediscussed all those concerned which customers look before investing in postals.

The report discussed following important aspects by which I achieved my primaryand secondary objectives:-

What are the criteria for the selection of a postal investment schemes whileinvesting?

From where would they like to get the services?

Are they satisfied with the services provided by the Postals?

What kind of features and offers should we focus on to attract clients?

What is the main source of information the customer gets to know thefacilities of the postal investment schemes?


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INDEX

Sr. No Content Page No

1 Executive Summary 8

2 Objective of the Project 16

3 Methodology Used 17

4 Data / Information Collected 19

5 Interpretation of the data 46

6 Information collected 50

7 Suggestions for Improvement 56

8 Conclusion 57

9 Appendix 58


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1,55,000. POST OFFICESS IN INDIA

The Department of Posts has the biggest reach with over 1, 55,000 post offices.Also, the domain knowledge, especially of the postmen, is unquestionably far

superior to any other organization. In fact many organizations like Registrar Generalof India and even municipal corporations and a host of other public and privateorganizations rely on domain knowledge of the postmen for surveys, verification etc.Most customers who value their mail trust only Post Office to deliver. In fact thereare many occasions of large corporates going back to India Post, even at higherprices, after they found that percentage of articles returned/remaining un-delivered inthe case of Post Offices was less than 1% compared to about 20% in case of othercompetitors like private couriers or Angadias.

SPEED POST

The fact that Speed Post traffic grew at nearly 40% last year (2007-2008) compared

to market growth of estimated 20%, clearly shows that Speed Post continues togrow from strength to strength, and is the market leader in express business.

Speed Post traffic in Maharashtra & Goa Postal Circle grew at nearly 50% last year(2007-2008) compared to about 40% at All-India level. In fact, Speed Post traffic andrevenue has been growing at a robust rate in recent years.For over 100 years, law has already provided for a monopoly to India Post forbooking, transmission to imposing penalties. It has sought to hold its place in themarket by providing quality service, and has been reasonably successful in that, asexplosive growth in Speed Post traffic would testify.

NON POSTAL INVESTMENTThough fundamentals of Indian economy continue to be sound, the country is nolonger an island. There has been some real, and some perceptional, effect on thefinancial sector in India in the wake of global financial meltdown. Investors did havea re-think on their options. Even at the best of times, a sound investor spreads hisrisk, and keeps a good share of his investible income in secure instruments. PostOffice has always offered a range of such secure investment/savings options likeMonthly Income Scheme (MIS) Recurring Deposits (RD), Time Deposits, PublicProvident Fund (PPF), NSS and various Savings Certificates.In the wake of recent uncertain financial climate, a much larger number of investorshave re-discovered the wisdom of investing/saving with the Post Office. Though the

exact figures would become available in the next few days, it is already clear that theinvestment in Post Office savings schemes has increased substantially.Maharashtra Postal Circle has the largest number of live Post Office Savingsaccounts in the country and the number has been increasing every year. Thenumber of Life Savings Accounts in Maharashtra Postal Circle has been increasedfrom 1.59crores in 2004-05 to 1.92crs in 2007-08. The gap between revenue andexpenditure had been narrowing down significantly till before the pay revision onaccount of acceptance of recommendations of the 6th Pay Commission.The number of new products and services is very wide ranging. A few of these are:


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POSTAL SERVICESS

* A massively augmented Speed Post network that touches every city and town inthe country; and a very competitive rate of Rs.12 for local (including suburbs), andOne India One Rate of Rs.25 for any where in India for articles weighing up to50gms. In addition, volume discounts, pick up and credit facility is also available.

Tear & water resistant envelopes are also being introduced soon for Speed Post.

* Total mailing solutions, including pre-mailing facilities like printing, addressing,folding, inserting, enveloping, sealing, franking, mailing and more under the brandBusiness Post.

* Bill Mail Service at very competitive price of Rs.3per local article and National BillMail Service (NBMS)@Rs.5 per article other places. The NBMS has a freeElectronic Intimation of Delivery (e-IOD) facility bundled with it.

* Electronic Intimation of Delivery (e-IOD) facility@ only 50 paisa per article for all

classes of article, including greetings, Bill Mail Service etc.

* Customized business solutions and business packages for corporate customers.For example, setting up of Mail Business Centre, dispatching mail directly frompremises of customers to destinations (sometimes even by hiring dedicated privatetransport for the same), installation of franking machines online in the mailpreparation lines of customers and their mailers.

* Address verification and Address database Curing facilities at reasonable prices toensure that your mail pieces do not get mis-delivered or delayed.In the next few days, the India Post is also going to introduce Worldnet Express, anew world class, time bound international express service from select cities in India,in collaboration with Deutsche Post. The booking will be done by select post offices,and transmission from India and delivery in foreign countries would be done byDeutsche Post. Complete track & trace facility and time bound delivery would be apart of the standard service.India Post in Mumbai is going to be the gateway for international parcel traffic,activation of post offices based international network for international moneyremittance etc.India Post will introduce hand held devices for delivery of Speed Post articles. A pilotfor this is likely to start operations within 2 months. Vehicles would be provided to

deliver staff to affect delivery in a more efficient manner and to cover larger territory.


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DEPARTMENT OF POSTS

Type Agency of Indian government (government semi-monopoly)

Founded 1764

Headquarters New Delhi, India

Key people Ms. Radhika Doraiswamy, Director General

Industry Postal Department

Employees 520,191 (As of 2007 (in Delhi)

Website www.indiapost.gov.in
http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/w/index.php?title=Government_semi-monopoly&action=edit&redlink=1http://en.wikipedia.org/wiki/Director_Generalhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/w/index.php?title=Postal_Department&action=edit&redlink=1http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.indiapost.gov.in/http://en.wikipedia.org/wiki/File:India_Post_New_Logo.jpghttp://en.wikipedia.org/w/index.php?title=Government_semi-monopoly&action=edit&redlink=1http://en.wikipedia.org/wiki/Director_Generalhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/w/index.php?title=Postal_Department&action=edit&redlink=1http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.indiapost.gov.in/http://en.wikipedia.org/wiki/Category:Types_of_companies


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AURANGABAD. (M.S.)

Who helped us Exploring and imparted us Knowledge.


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SPECIAL THANKS

Mr. Bujade

(Money Transfer Department),

Head Post Office, Juna Bazar,

Aurangabad. (M.S.)

Mr. W.K Tirankar

(Senior Post Master),

Head Post Office, Juna Bazar,

AURANGABAD. (M.S.)


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Lord Dalhousie created the 'All India Postal Service' on2nd March 1854 and Sir H.P.A.B. Riddlell was the firstofficer to join it. It is to record here that Sir Riddell firstjoined as Deputy Collector of Sukkur in Scinde Provinceon 29th May 1843 and after that as Magistrate and Dy.Collector of Muzaffarnagar on 11th December 1843 andlater on as Postmaster General of newly created NorthWestern Province circle on 1st March 1844 with goodrecord of service. It is important to mention here that theappointment of the Director General came first on 2ndMarch, 1854 as Sir H.P.A.B. Riddell and the Post OfficeAct XVII of 1854 was drafted later on.


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THINGS WE SHOULD KNOW

HORSE POST

FOOT POST

Ibn Battuta describes the Indian postal system in the 14th century as follows:In India the postal system is of two kinds.The horsepost, called uluq, is run by royal horses stationed at a distance of everyfour miles.The foot-post has three stations per mile; it is called dawa, that is one-third of a mile

...Now, at every third of a mile there is a wellpopulated village, outside which are threepavilions in which sit men with girded loins ready to start.

Each of them carries a rod, two cubits in length, with copper bells at the top.

When the courier starts from the city he holds the letter in one hand and the rod withits bells on the other; and he runs as fast as he can.

When the men in the pavilion hear the ringing of the bell they get ready.As soon as the courier reaches them, one of them takes the letter from his hand andruns at top speed shaking the rod all the while until he reaches the next dawa.And the same process continues till the letter reaches its destination.This foot-post is quicker than the horse-post; and often it is used to transport thefruits ofKhurasan which are much desired in India."


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http://en.wikipedia.org/wiki/Ibn_Battutahttp://en.wikipedia.org/wiki/Khurasanhttp://en.wikipedia.org/wiki/Ibn_Battutahttp://en.wikipedia.org/wiki/Khurasan


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OLD LOGO

The British East India Company established post offices in Mumbai, Chennai andKolkata from 1764-1766, each serving the Bombay, Madras and Calcuttapresidencies. During Warren Hastings' governorship, postal service was made

available to the general public. A letter would cost 2 annas (one-eighth of a Rupee)for distances up to 100 miles (160 km). Payments would be done through coppertokens; a letter was hand stamped "post paid" if paid for, otherwise it was stamped"post unpaid" or "bearing".In 1839, North West Province Circle was formed and since then, new Postal Circleswere formed as needed. In December 1860 Punjab Circle, in 1861 Burma Circle, in1866 Central Province Circle and in 1869 Sind Circle were formed. By 1880 circleshad been formed in Oudh (1870), Rajputana (1871), Assam (1873), Bihar (1877),Eastern Bengal (1878) and Central India (1879).Afterwards, the creation of new circles was accompanied by the merging of somecircles. By 1914, there were only 7 Postal Circles Bengal & Assam, Bihar &

Orissa, Bombay (including Sind), Burma, Central, Madras, Punjab & NWF and U.P. [3]

The usage of the stamps began on 1 July1852 in Scinde/Sindh district, with the useof an embossed pattern on paper or wax. The shape was circular, with "SCINDEDISTRICT DAWK" around the rim, leading to the common name "Scinde Dawk".1854 was the year of the first issue for all of India. The stamps were issued by theBritish East India Company, which first printed a 1/2a vermilion in April but neversold it to the public, then put four values (1/2a, 1a, 2a, 4a) on sale in October. Allwere designed and printed in Calcutta, featuring the usual profile of Queen Victoria.A new set of stamps, with the queen in an oval vignette inside a rectangular frame,and inscribed "EAST INDIA POSTAGE", was printed by De La Rue in England (whoproduced all the subsequent issues of British India) and made available in 1855.These continued in use until after the British government took over administration ofIndia in 1858, and from 1865 were printed on paper watermarked with an elephanthead.


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http://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Warren_Hastingshttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Awadhhttp://en.wikipedia.org/wiki/Rajputanahttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/India_Post#cite_note-history19471997-2%23cite_note-history19471997-2http://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1852http://en.wikipedia.org/wiki/Scindehttp://en.wikipedia.org/wiki/Sindhhttp://en.wikipedia.org/wiki/Scinde_Dawkhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Vermilionhttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Victoria_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Vignettehttp://en.wikipedia.org/wiki/De_La_Ruehttp://en.wikipedia.org/wiki/Watermarkhttp://en.wikipedia.org/wiki/Elephanthttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Warren_Hastingshttp://en.wikipedia.org/wiki/Rupeehttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Awadhhttp://en.wikipedia.org/wiki/Rajputanahttp://en.wikipedia.org/wiki/Assamhttp://en.wikipedia.org/wiki/Biharhttp://en.wikipedia.org/wiki/India_Post#cite_note-history19471997-2%23cite_note-history19471997-2http://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1852http://en.wikipedia.org/wiki/Scindehttp://en.wikipedia.org/wiki/Sindhhttp://en.wikipedia.org/wiki/Scinde_Dawkhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Vermilionhttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Victoria_of_the_United_Kingdomhttp://en.wikipedia.org/wiki/Vignettehttp://en.wikipedia.org/wiki/De_La_Ruehttp://en.wikipedia.org/wiki/Watermarkhttp://en.wikipedia.org/wiki/Elephant


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GOVERNANCE AND ORGANIZATION

Thiru A. Raja & Thiru Jyotiraditya Madhavrao Scindia, launching the new logo forIndia Post on 23 Sept 2008, at New Delhi.

The postal service comes under the Department of Posts which is a part of theMinistry of Communications and Information Technology under the Government ofIndia. The apex body of the department is the Postal Service Board. The boardconsists of a chairman and three members. The three members hold the portfolios ofOperations & Marketing, Infrastructure & Financial Services, and Personnel.The Joint Secretary and Financial Advisor to the Board is also a permanent inviteeto the Board.India has been divided into 22 postal circles. Each circle is headed by a ChiefPostmaster General. Each Circle is further divided into Regions comprising fieldunits, called Divisions, headed by a Postmaster General. Other functional units likeCircle Stamp Depots, Postal Stores Depots and Mail Motor Service may exist inthe Circles and Regions.Besides the 22 circles, there is a special Circle called the Base Circle to cater to thepostal services of the Armed Forces of India. The Base Circle is headed by anAdditional Director General, Army Postal Service holding the rank of a MajorGeneral


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http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Major_Generalhttp://en.wikipedia.org/wiki/Major_Generalhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Major_Generalhttp://en.wikipedia.org/wiki/Major_General


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OBJECTIVE OF THE PROJECT

To study how Post office provides service to its clients.

The research is performed to know how a postal investment serves the clientwith various investment schemes.

This research is also based on the procedure to know the awareness amongpeople about postal.

To study about what problems are been faced by the postal investmentschemes and its clients.


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METHODOLOGY

Primary data

A questionnaire is prepared for field survey, which will be filled on the basis ofinterviews and free discussion with Mr. W.K Tirankar (Senior Post Master), Mr.Bujade (Money Transfer Department) and Sachin Patil (Agent) In order toconduct field survey, interviews and questionnaire filled in by the Mr. Bujade(Money Transfer Department) and the customer questionnaire are take as studyarea and their view and options are taken in to consideration.

Secondary data

Such type of data deals with the used of important contribution in the subject,important books, magazines, survey material, periodical reports, newspaperpublished in India and abroad. To present useful information on this topic we usedvarious information publishing mediums like internet, magazines and newspapers.Around every company has its own website. All the useful information presented inthis project has been captured from their respective websites.


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BIBLIOGRAPHY

The famous magazine POSTAL INVESTMENT IN INDIA.

Web sites.1. www.google.co.in2. www.indiandata.com/postal3. www.indiapost.gov.in

Postal Investment councils website.

Personally visited the respected Post Offices

1. Head Post Office, Juna Bazar, Aurangabad (M.S)2. Post Office, Rajabazar, Aurangabad (M.S)3. Post Office, Osmanpura, Aurangabad (M.S)


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http://www.indiapost.gov.in/http://www.indiapost.gov.in/


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SOME MAJOR POSTAL SERVICES

SPEED POST

The high speed expresses service for letters and documents. Speed Post links morethan 1200 towns in India, with 290 Speed Post Centers in the national network andaround 1000 Speed Post Centers in the state network. For regular users, SpeedPost provides delivery anywhere in India under contractual service. Speed Postoffers a money-back guarantee, under which the Speed Post fee will be refunded ifthe consignment is not delivered within the published delivery norms.

e-Payment

The most convenient way to pay your bills under one roof. With its tremendousreach and expertise India Post specializes in acceptance of payments across thecounter and their consolidation. e-Payment is a Many to One service through whichbills (telephone, electricity, etc.) paid by customers in post offices are electronicallyconsolidated.

Logistics Post

A brand new service from India Post great for sending parcels and largeconsignments across the nation and around the world. Logistics Post manages the

entire distribution side of the logistics infrastructure from collection to distribution,from storage to carriage, from order preparation to order fulfillment. Logistics Post isan ideal service for sending large consignments including multi-parcels, just-in-timeparcels, bulk-break consignments and goods of any weight. While Parcel Post offersweight up to 35 kg, Logistics Post has no weight limit. Logistics Post offers not onlyphysical logistics services but also provides comprehensive supply chainmanagement services, leading to improvement in the service level efficiency.

e-Post

Documents and greetings sent online but delivered by mail.

Business Post

Total pre-mailing solutions including collection/printing, inserting, and addressing.

Media Post

Reach millions through advertisements on Post cards , Letters walls of post offices,letter boxes,post cards and statonary.


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Direct PostDistributing advertising materials directly to prospective customers.

Postal Life Insurance

Postal Life Insurance was started in 1884 as a welfare measure for the employees ofPosts & Telegraphs Department under Government of India dispatch No. 299 dated18-10-1882 to the Secretary of State. Due to popularity of its schemes, variousdepartments of Central and State Governments were extended its benefits. NowPostal Life Insurance is open for employees of all central and state governmentdepartments, nationalized banks, public sector undertakings, financial institutions,local municipalities and Zila Parisads an Educational Institution aided by theGovernment.

Instant Money Order Service (iMO)

The instant domestic money is available in 717 post offices.International Money TransferAs a result of the collaboration of the Department of Posts with the Western UnionFinancial Services, state of the art international money transfer service is nowavailable through post offices in India. This enables instantaneous remittance ofmoney from 185 countries to India. The recipients can in fact collect the money inminutes after the sender has made the remittance. The service is targeted toparticularly fulfill the needs of NRI dependent families in India, visiting Internationaltourists and foreign students studying in India.

POSTAL SERVICES.

Indian postal service is the government operated postal system in India. The generalpublic refers to the Indian postal service as the post office.

The Indian postal service is the largest postal network in world with 1,55,000 postoffices spread across all over the country. With post offices in almost every corner of

the country, it helps people stay in touch irrespective of the length and breadth of thecountry.

Indian postal service provide many facilities like- general or registered mail, parcelpost, speed post, greeting post, express post, media post, e post and special courierservice known as EMS-speed post. It also provides us with various financial serviceslike international money transfer, instant money order service, money order, mutualfunds. Various post office savings schemes like National Savings Certificate, KisanVikas Patra, Recurring Deposits and Term Deposits are also available.

The letter boxes in India are colour coded like- green coloured boxes are meant for


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local letters, and for metropolitan and other cities as well as international mails canbe dropped in red coloured boxes. Quick Mail Service (QMS) has yellow colourboxes.

Non-postal services

The post office has also traditionally served as a financial institution for millions ofpeople in rural India. Currently these are some of the activities being supported:

Public Provident Fund

National Savings Certificate

Kisan Vikas Patra

Savings Bank Account

Monthly Income Scheme

Recurring Deposit Account

National Savings Scheme 1992 - discontinued from 01.11.2002

Post Office Time Deposit

Post boxes for mail receipt


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http://www.indiapost.gov.in/Netscape/15yearsPPF.htmlhttp://www.indiapost.gov.in/Netscape/6yearsNSC.htmlhttp://www.indiapost.gov.in/Netscape/KVP.htmlhttp://www.indiapost.gov.in/Netscape/SavingsAccount.htmlhttp://www.indiapost.gov.in/Netscape/6yearsMIS.htmlhttp://www.indiapost.gov.in/Netscape/5YearsRD.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/Netscape/TimeDeposit.htmlhttp://www.indiapost.gov.in/Netscape/15yearsPPF.htmlhttp://www.indiapost.gov.in/Netscape/6yearsNSC.htmlhttp://www.indiapost.gov.in/Netscape/KVP.htmlhttp://www.indiapost.gov.in/Netscape/SavingsAccount.htmlhttp://www.indiapost.gov.in/Netscape/6yearsMIS.htmlhttp://www.indiapost.gov.in/Netscape/5YearsRD.htmlhttp://www.indiapost.gov.in/Netscape/NSS92.htmlhttp://www.indiapost.gov.in/Netscape/TimeDeposit.html


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OBJECTIVES OF POST OFFICE

Department of Posts is committed to providing universal access to basicpostal services in the country at affordable prices.

Its objectives are to:-

Ensure availability of basic postal services in all parts of the country,including tribal, hilly and remote areas.

Provide efficient reliable and economic service.

Provide value added services according to market requirements.

Modernize the services to handle the growing volume of work withefficiency and thereby enhance customer and employee satisfaction.

Be a forward looking organization, and

Generate more resources and improve financial performance.


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RESPONSIBILITIES OF POST OFFICE

As per Government of India (Allocation of Business) Rules, 1961, second Schedule,Rule 3,Distribution of Subjects amongthe Departments the Department Of Posts is responsible for

1. Execution of works, including purchase of land debitable to the CapitalBudget

pertaining to the Department of Posts.

2. Posts, including Post Office Savings Banks (Administration), Post OfficeCertificate (Administration), Post Office Life Insurance Fund (Administration),

printing of public postage stamps/commemorative stamps including postalstationery, premium postal products and any agency function.

3. International cooperation in matters connected with postal communications,including matters relating to all international bodies dealing with postalcommunications such as Universal Postal Union, Asia Pacific Postal Union(APU), Commonwealth Postal Union.

4. Matters relating to introduction, development and maintenance of all servicesby the Post Office including those based on cable, radio and satellitecommunications channels: Provided that these matters do not amount tobroadcasting, narrow casting, cable and radio networking services and arealso not governed by the Indian Telegraph Act, 1885 and the rules madethere under, and not exclusively allotted to any other Department.

5. Promotion of feasibility survey, research and development in the field ofactivities allotted to the Department.

6. Matters relating to administration of the Indian Post Office Act, 1898 and rulesmade there under as well as other laws or enactments having a bearing onpostal activities, not specifically allotted to any other Department.


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Largest postal network

Worlds largest network.89% post offices are in rural area.Post Offices provide a range of basic postal servicesPost office serves an area of 21.09 sq. km. & population of 6,585.

India has the largest Postal network in the world with 1,55,669 Post Offices ofwhich 89% are in rural areas. At the time of independence, there were 23,344 PostOffices, which were primarily in the urban areas. Thus the network has registered a

seven fold growth over the last five decades, the focus of this expansion being in therural areas. On an average, a post office serves an area of 21.09 sq. km. &population of 6,585. Through these offices it ensures daily delivery of dak at thedoorstep of every customer all over the country, collection of letters throughletterboxes, and also sale of stamps and stationery through village postmen at thedoorstep of customers in rural areas. Post Offices in Urban and Rural areas providea range of basic postal services to the customers, including banking and insuranceservices. Bill collection felicities are being extended through all post offices in urbanareas, and identifying post offices in rural areas. Certain value added services arebeing provided in selected offices in urban areas.

Efforts are also being made to identify means of providing postal servicesthrough more cost effective measures. The Licensed Stamp Vendor Scheme,Licensed Postal Agents Scheme and the Panchayat Sanchar Sewa Yojana(PSSY)were initiatives that were taken up in this regard. So far 7,697 Panchayat SancharSewa Kendras(PSSKs) have been opened, including 2,371 PSSKs under the 10 th

Plan. Since an assessment of these schemes indicates the need for restructuringthem, no targets were given in 2004-05 for opening PSSKs.Efforts are also underway to optimize the retailing capacity of the network. Onemajor initiative taken up in the current year is the retailing of non-life insuranceproducts through Post Offices. The Department has entered into an agreement with

the Oriental Insurance Company to function as their Corporate Agent for marketingidentified non-life products. This Scheme was launched on a pilot basis throughselect Post Offices in 2 districts each of 7 Circles. It is being gradually expanded,after providing the requisite training to other Circles.


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MAJOR FINDINGS

NON-Postal Services in India

India possesses the largest postal network in the world with 155,000 post officesspread all over the country as on March 31, 2001, of which 89 per cent are in therural sector. Post offices in India play a vital role in the rural areas. They connectthese rural areas with the rest of the country and also provide banking facilities in theabsence of banks in the rural areas. Post Offices offer various types of accounts.

These are:

Savings Account

Recurring Deposit Account

Monthly Income Account

Time Deposit Account

Post Offices also offer various saving and tax saving instruments as:



Kisan Vikas Patra

AND

POSTAL LIFE INSURANCE


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Post Office Saving Account

Product : Saving Account.Place : Post-Office.

Price : Rs.20 to 1lack (individual)Rs.2 lack (joint)No limit (group)

Promotion : Agents.

Post office saving account is similar to a savings account in a bank. It is asafe instrument to park those funds, which you might need to liquidate fully orpartially at very short notice. Post office savings accounts are especially suited forthose living in rural and semi-rural areas where the reach of banks is very limited.

The account can be opened at any post office with a minimum balance of Rs. 20.Maximum of Rs. one lack for single account holder and Rs. two lacks for jointaccount holders can be deposited. There is no lock-in or maturity period. Theamount can be withdrawn anytime subject to keeping a minimum balance of Rs. 50in simple account and Rs. 500 for cheque facility accounts.

Rate of interest is decided by the Central Government from time to time. Interest iscalculated on monthly balances and credited annually. Income tax relief is availableon the amount of interest under the provisions of section 80L of Income Tax Act.

Interest Rates

3.5% per annum on individual/joint and group accounts. 3% per annum onpublic accounts and Security Deposits Account for purchase of motor vehicle ortractor and for other purposes 2% per annum. For Official capacity account 2% perannum.

Investment Limits and Denominations

Minimum Rs.20/-. Maximum Rs. 1,00,000/- for an individual account, Rs.2,00,000/- for joint account. No limit on group/institutional or official capacity

accounts.

Features and Tax Rebate

Cheque facility available cheques are also accepted by scheduled banks.Interest is completely tax free under section 10 of Income Tax Act financial assets

in form of small savings Schemes have been exempted from wealth tax


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Post Office Recurring Deposit Account

Product: RD (Recurring Deposit)

Place: post officePrice: Rs. Xyz (per month)Promotion: Agents.Duration: 5 years.

Recurring deposit account is a systematic way of saving money. The scheme ismeant for those investors who want to deposit a fixed amount regularly on monthlybasis in order to get a tidy sum after 5 years on the maturity of the account.

The Recurring deposit account can be opened at any post office Period of maturityof account is 5 years. Sixty equal monthly deposits shall be made in an account inmultiples of Rs. five subject to a minimum of ten rupees.

Premature closure of accounts is permissible after expiry of three years. In case ofpremature closure of account, the interest at the rate applicable to post officesavings account shall be payable.

5Year Recurring Deposit (RD)Interest Rates

Maturity value from time to time (for denomination of Rs.10/):

Period during which opened Amount repayable for anaccount of Rs. 10/-

denominationFrom To

01.10.1991 01.09.1993 856.40

02.09.1993 31.12.1998 833.40

01.01.1999 14.01.2000 811.15

15.01.2000 28.02.2001 789.60

01.03.2001 28.02.2002 758.53

01.03.2002 28.02.2003 748.49

01.03.2003 onwards 728.49


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FEATURES OF RD.

Minimum amount of Deposit is Rs.10. No maximum limit. Deposit should be madeevery month within the calendar month. Default fee is chargeable for delayed

deposit at 0.20 P. per month of delay, for Rs.10 Dn.

Maximum defaults allowed in an account is four (4). After four defaults theaccount is treated as discontinued. Discontinued account can be revived bypaying defaulted deposits, within two months from the fifth default. If it is not sorevived, the account cannot be continued.

For advance deposits, including deposit for current month, rebate is allowed at therate: Denomination Rs.10. 6 advance deposits.Re.1/-12 advance deposits: 4/-

Premature closure is permitted on completion of3 years from the date of opening.Interest is to be calculated as per the rules and rate applicable to individualaccount. at the rate applicable to savings account from time to time is calculated andpaid.

One withdrawal is permitted from the account on completion of one year from thedate of opening, on the conditions that:

i. At least 12 deposits should have been madeii. Account should not have been discontinued one.iii. Amount not exceeding 50% of the balance.iv. Withdrawal may be repaid in one lump or in equal monthly installments.v. Interest is charged at 15%.

After maturity of the account, it can be continued for a further period of 5 years withor without further deposits. During this extended period, the account can be closedat any time. Post maturity interest is paid at the prescribed rate.

Under the protected savings scheme, on the death of depositor before maturity ofthe account, the legal heir is entitled to get full maturity value, subject to theconditions:

i. Age of the depositor at the time of opening should be between 18 and 53ii. Benefit limited to the maturity value of Rs.50 denominationiii. Account should not have been discontinued as on the date of deathiv. At least two years should have been completedv. At least 24 deposits should have been made.vi. For the first 24 months no default should be outstanding.vii. No withdrawal should have been taken during the first 24 months.

Interest earned is exempted as per Section 80L of Income Tax Act.


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Post Office Monthly Income Account

Product: MI Account.Place: Post-Office.

Price: 1000 (Min deposit)Promotion: Agents.Durability: six years.

Post Office Monthly Income Account is meant for those investors who want to investa lump sum and earn interest on monthly basis for their livelihood. The scheme is,therefore, a boon for retired persons.

The account can be opened by a single adult or 2-3 adults jointly. Period of maturityof an account is six years. Only one deposit can be made in an account. Minimumdeposit limit is Rs 1000. Maximum deposit limit is Rs. 3 lacks in case of singleaccount and Rs. 6 lacks in case of joint account.

Interest @ 8% per annum is payable monthly. In addition, bonus equal to 10% of thedeposited amount is payable at the time of repayment on maturity. Prematureclosure facility is available after one year subject to condition. Income tax relief isavailable on the interest earned as per limits fixed vide section 80L of Income Tax,as amended from time to time.

Monthly Income Scheme

Safe & sure way to get a regular monthly income. Specially suited for retired employees/ Senior Citizens or any one with high

sum for investment .

Rate of interest 8%.

10% Bonus on maturity. (withdrawn w.e.f 13th February 2006)

Maturity Period - Six Years.

Post maturity Interest at the rate applicable from time to time (at present3.5%)

Auto credit facility to SB Account.

Type of Account Minimum limit Maximum limit

Single Rs. 1000/- Rs. 3 lakhs

Joint Rs. 1000/- Rs. 6 lakhs

Deposit in Monthly Income Scheme and invest interest in Recurring Deposit to get10.5% (approx) interest.Above scheme operates automatically, if you open a saving bank accountand give arequest for automatic transfer of Monthly Income Scheme interest to RecurringDeposit through Saving Bank account.


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Post Office Time Deposit Account

Product: Time deposit A/C

Place: Post OfficePrice: Rs 200- no limitPromotion: AgentsDurability: 1yr 5yr

Post office time deposit account is just like the bank fixed deposit account. Thesetime deposits are meant for those investors who want to deposit a lump sum for afixed period. Time deposit account can be opened at any post office with a minimumdeposit of Rs. 200. There is no maximum limit for the account.

The amount can be deposited for 1year, 2year, 3year, and 5years. The depositedamount is repayable after expiry of the period for which it is made viz: 1 year, 2years, 3 years or 5 years.

Interest is calculated on quarterly compounding basis, and is payable annually. Rateof interest varies according to the period of the deposit and is decided by the CentralGovernment from time to time. Income tax relief is available on the amount ofinterest under the provisions of section 80L of Income Tax Act.

Premature withdrawals from all types of post office time deposit accounts are

permissible after expiry of 6 months with certain conditions.


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Product: NSCPlace: Post-Office.

Price: Rs. Xyz/ month.Promotion: Agents.Durability: six years.

National Savings Certificate, popularly known as NSC, is a time-tested tax savinginstrument that combines adequate returns with high safety.

National Savings Certificate can be purchased by the following:

An adult in his own name or on behalf of a minor, A minor, A trust Two adults jointly, Hindu Undivided Family

National Savings Certificates are available in the denominations of Rs. 100, Rs 500,Rs. 1000, Rs. 5000, & Rs. 10,000. There is no maximum limit on the purchase of thecertificates.

Period of maturity of a certificate is six years. Presently, maturity value of acertificate of Rs. 100 denomination is Rs. 160.10. Maturity value of a certificate ofany other denomination is at proportionate rate. Premature encashment of thecertificate is not permissible except at a discount in the case of death of theholder(s), forfeiture by a pledge and when ordered by a court of law.

Interest accrued on the certificates every year is liable to income tax but deemed tohave been reinvested. Income Tax rebate is available on the amount invested andinterest accruing under Section 88 of Income Tax Act, as amended from time totime. Income tax relief is also available on the interest earned as per limits fixed videsection 80L of Income Tax, as amended from time to time.


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National Savings Certificate Interest Rate

Period during which purchased Maturity Value for aDenomination of

Rs.100.00From To01.01.1999 14.01.2000 Rs.195.60

15.01.2000 28.02.2001 Rs.190.12

01.03.2001 28.02.2002 Rs.174.52

01.03.2002 28.02.2003 Rs.169.59

01.03.2003 Onwards Rs.160.10

Features

One person can be nominated for certificates of denomination of Rs. 100- andmore than one person can be nominated for higher denominations.

Maturity period is 6 years. No premature encashment is permitted in the normalcourse. PREMATURE ENCASHMENT under sub-rule (1) of rule 16 after the expiryof three years from the date of purchase of certificate. Table below for a certificateof Rs.100 denomination and at a proportionate rate for a certificate of any otherdenomination.

Table

Period from the date of the certificate tothe date of its encashment.

Issued from01.03.2001 to28.02.2002

Issued from01.03.2002 to28.02.2003

01.03.2003onwards

Three years or more, but less than threeyears and six months

126.43 124.62 121.15

Three years and six months or more, butless than four years.

131.71 129.51 125.09

Four years or more, but less than fouryears and six months.

136.90 134.29 129.16

Four years and six months or more, butless than five years.

142.48 139.43 133.36

Five years or more, but less than fiveyears and six months.

147.98 144.46 137.69

Five years and six months or more, butless than six years

153.89 149.83 142.16


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Product: PPF.Place: Post-Office.

Price: Rs.xyz/month.Promotion: Agents.Durability: 15 years.

Public Provident Fund, popularly known as PPF, is a savings cum tax savinginstrument. It also serves as a retirement planning tool for many of those who do nothave any structured pension plan covering them.

Public Provident Fund account can be opened at designated post offices throughoutthe country and at designated branches of Public Sector Banks throughout thecountry. The account can be opened by an individual in his own name, on behalf ofa minor of whom he is a guardian, or by a Hindu Undivided Family.

Minimum deposit required in a PPF account is Rs. 500 in a financial year. Maximumdeposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelvein a financial year.

The account matures for closure after 15 years. Account can be continued with orwithout subscriptions after maturity for block periods of five years. Prematurewithdrawal is permissible every year after completion of 5 years from the end of the

year of opening the account.

Loans from the amount at credit in PPF amount can be taken after completion of oneyear from the end of the financial year of opening the account and before completionof the 5th year.

Interest at the rate notified by the Central Government from time to time, iscalculated and credited to the accounts at the end of each financial year. Presently,the rate of interest is 8% per annum.

Income Tax rebate is available "on the deposits made", under Section 88 of Income

Tax Act, as amended from time to time. Interest credited every year is tax-free.


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Kisan Vikas Patra

Product: KVP.Place: Post-Office.

Price: Rs.xyz/month.Promotion: Agents.Durability: 8 years & months.

Kisan Vikas Patra (KVP) is a saving instrument that provides interest income similarto bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8 years &7 months.Kisan Vikas Patra can be purchased by the following:

An adult in his own name, or on behalf of a minor, A minor, A Trust, Two adults jointly.

Kisan Vikas Patra are available in the denominations of Rs 100, Rs 500, Rs 1000,Rs 5000, Rs. 10,000 & Rs. 50,000. There is no maximum limit on purchase of KVPs.Premature encashment of the certificate is not permissible except at a discount inthe case of death of the holder(s), forfeiture by a pledgee and when ordered by acourt of law.

No income tax benefit is available under the Kisan Vikas Patra scheme. However,

the deposits are exempt from Tax Deduction at Source (TDS) at the time ofwithdrawal.


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Postal Life Insurance

Postal Life Insurance was started in 1884 as a welfare measure for the employees ofPosts & Telegraphs Department under Government of India dispatch No. 299 dated`18-10-1882 to the Secretary of State. Due to popularity of its schemes, variousdepartments of Central and State Governments were extended its benefits. NowPostal Life Insurance is open for employees of all Central and State GovernmentDepartments, Nationalized Banks, Public Sector Undertakings, Financial Institutions,Local Bodies like Municipalities and Zila Parisads, Educational Institutions aided bythe Government etc

Rural Postal Life Insurance

On 24th March, 1995, the benefits of Postal Life Insurance were extended to ruralpopulace of the country under the banner of Rural Postal Life Insurance.

Postal Life Insurance Schemes

Santhosh ( endowment assurance )Suraksha (whole life assurance )Suvidha ( convertible whole life assurance )Sumangal ( anticipated endowment assurance )Yugal suraksha ( joint life endowment assurance )Children policy

RURAL POSTAL LIFE INSURANCE SCHEMES

Gram santosh ( endowment assurance )Gram suraksha (whole life assurance )Gram suvidha ( convertible whole life assurance )

Gram sumangal ( anticipated endowment assurance )Gram priya ( 10 years rpli )Children policy


37
http://www.indiapost.gov.in/Santhosh.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/Santhosh.htmlhttp://www.indiapost.gov.in/Suraksha.htmlhttp://www.indiapost.gov.in/Suvidha.htmlhttp://www.indiapost.gov.in/Sumangal.htmlhttp://www.indiapost.gov.in/YugalSuraksha.htmlhttp://www.indiapost.gov.in/PLIChildren.htmlhttp://www.indiapost.gov.in/GramSanthosh.htmlhttp://www.indiapost.gov.in/GramSuraksha.htmlhttp://www.indiapost.gov.in/GramSuvidha.htmlhttp://www.indiapost.gov.in/GramSumangal.htmlhttp://www.indiapost.gov.in/GramPriya.htmlhttp://www.indiapost.gov.in/PLIChildren.html


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Postal Life Insurance Santhosh

An Endowment Assurance Scheme

Product: PLI-Santhosh.place: Post-Office.Price: Rs.xyz/month.promotion: Agentseligible: loan(36month)

Under this scheme the proponent is given an assurance to the extent of the SumAssured and accrued bonus till he/she attains the pre-determined age of maturity.In case of unexpected death of the insurant, the assignee, nominee or the legal heiris paid the full Sum Assured together with the accrued bonus.

* Minimum Age at entry is 19 years* Maximum Age at entry is 55 years* Premium ceasing at the age of 35, 40, 45, 50, 55, 58 & 60 ( Payment of premia forat least 5 years )

* Maximum Sum Assured of Rs.10 lac* Insurance Cover starts from the date of acceptance* Eligible for loan after payment of premia for 36 months.* Interest Rate @ 10% on loan* Surrender allowed after payment of premia for 36 months* Assignment facility available

* Can be converted into Suraksha (Whole Life Assurance )* No medical examination required if age is 35 years or less and Sum Assured is not

more than Rs. 1 lac.* Nomination facility is available.


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POSTAL LIFE INSURANCE- SURAKSHA

A Whole Life Assurance SchemeProduct: PLI-SURAKSHA.place: Post-Office.Price: Rs.xyz/month.promotion: Agentseligible: loan(48month)

Minimum Age at entry is 19 years Maximum Age at entry is 55 years Premia ceasing at the age of 55, 58, 60. ( Minimum payment of premia for 5

years) Maturity amount is payable only to the Assignee, nominee or the legal heir

after death of the insurant. Maximum sum assured is Rs. 10 lac Insurance cover starts from the date of acceptance of proposal to the extent

of sum assured with accrued bonus Bonus shall accrue till the date of death. Higher bonus and lower premia than the Endowment Policy Eligible for loan after payment of premia for 48 months Surrender of policy allowed after payment of premia for 36 months Assignment facility available The policy can be converted into an Endowment Assurance Policy after

completion of one year and before 57 years of age of the insurant Nomination facility available


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Postal Life Insurance- Sumangal

An Anticipated Endowment Assurance Scheme which is also known as MoneyBack Policy.

Product: PLI- Sumangal.place: Post-Office.Price: Rs.xyz/month.promotion: Agentseligible: loan(48month)

Insurance cover starts from the date of acceptance of the Proposal

Survival benefits is paid to the insurant periodically (Such payments will not be takeninto consideration in the event of unexpected death of the insurant and the full sumassured with accrued bonus is payable to the assignee, nominee or legal heir).Two type of policies i.e. 15 year term and 20 year term.In case of 15 years termpolicy the minimum Age at entry is 19 years and maximum Age at entry is 45years.In case of 20 years term policy, the minimum Age at entry is 19 years andmaximum Age at entry is 40 years.Maximum Sum assured is Rs.5 lacNo loan facilityNo surrender value is payableAssignment facility is available

Nomination facility availableSurvival benefit is payable as under : 15 years 20 years

at the end of 6 years 8 years 20% of sum assured at the end of 9 years 12 years 20% of sum assured at the end of 12 years 16 years 20% of sum assured at the end of 15 years 20 years 40% of sum assuredwith bonus


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Postal Life Insurance - Yugal Suraksha

Product: PLI-SURAKSHA.place: Post-Office.Price: Rs.xyz/month.promotion: Agentsfacilities: loan

It is a joint-life Endowment Assurance in which one of the spouses is eligibleforPLI policies

Life insurance coverage is provided to both the spouses to the extent of sumassured with accrued bonus from the date of acceptance of proposal

Insurance cover is started from the date of acceptance It is a term policy of 5 to 20 years. It gives assurance to both, the Insurant and spouse Minimum Age at entry is 21 years Maximum Age at entry is 45 years Maximum sum assured of Rs. 5 lac Surrender value payable after 3 years Assignment facility available Nomination facility available Loan facility is available.


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Rural Postal Life Insurance - Gram Suraksha

It is a Whole Life Assurance Scheme.An Endowment Assurance SchemeProduct: PLI-Gram SURAKSHA.

place: Post-Office.Price: Rs.xyz/month.promotion: Agentsfacilities: loan/nomination

Under this scheme, the proponent is given an assurance to the extent of sumassured and accrued bonus which is paid to the assignee, nominee or legal heirafter the death of the insurant.

Insurance cover starts from the date of acceptance Minimum Age at entry is 19 years Maximum Age at entry is 55 years and for policies with sum assured beyond

Rs.1 lakh maximum age at entry is 45 years Premium ceasing at the age of 55, 58 & 60 Maximum sum assured is Rs. 2 lac Eligible for loan after payment of premia for 48 months. Interest rate @ 10% on loan Surrender of policy allowed after payment of premia for 36 months Assignment facility available Can be converted into Gram Santosh (Endowment Assurance)

Nomination facility available


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Rural Postal Life Insurance - Gram Suvidha

A Convertible Whole Life Assurance Scheme.

An Endowment Assurance Scheme

Product: PLI- Gram Suvidha.place: Post-Office.Price: Rs.xyz/month.promotion: Agentsfacilities: loan/nomination.

Insurance cover starts from the date of acceptance Minimum age at entry is 19 years

Maximum age at entry is 55 years Premia ceasing at the age of 55, 58 & 60 (Payment of premia for at least 5 years ) Maximum sum assured Rs. 1 lac Eligible for loan after payment of premia for 48 months Interest on loan @ 10 % Surrender of Policy allowed after payment of premia for 36 months Assignment facility available Can be converted into Gram Santosh

(Endowment Assurance after 5 years with premia ceasing at the ageapplicable to that Scheme )

Nomination facility available.


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Rural Postal Life Insurance - Gram Sumangal

An Anticipated Endowment Assurance Scheme which is also known as MoneyBack PolicyAn Endowment Assurance Scheme

Product: PLI- Gram Sumangal.place: Post-Office.Price: Rs.xyz/month.promotion: Agentsfacilities: loan/nomination.

Insurance cover starts from the date of acceptance of the proposal. Survival benefit is paid to the insurant periodically

(Such payments will not be taken into consideration in the event of unexpecteddeath of the insurant and full sum assured with accrued bonus is payable to thenominee).

Two type of policies i.e. 15 years term and 20 years term. Minimum age at entry is 19 years and maximum age at entry is 40 years Maximum sum assured is Rs.1 lac. No loan facility No surrender value is payable Nomination facility is available. Assignment facility is available. Survival benefit is payable as under: 15 years 20 years

at the end of 6 years 8 years 20% of Sum Assured at the end of 9 years 12 years 20% of Sum Assured at the end of 12 years 16 years 20% of Sum Assured at the end of 15 years 20 years 40% of Sum Assured

With bonus


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RURAL POSTAL LIFE INSURANCE - GRAM PRIYA

It is Anticipated Endowment Scheme for Ten Years

- Insurance cover start from the date of acceptance

Proponent is given an assurance to the extent of Sum Assured with accrued bonus payabletill completion of ten years.

Minimum Age at entry is 19 years

Maximum Age at entry is 40 years

No interest charged upto one year arrear of premia in case of natural calamities like flood,drought, earthquake, cyclone etc.

Survival benefit is payable as under:

At the end of 4 years - 20%

At the end of 7 years - 20%

At the end of 10 years - 60% with accrued bonus

Nomination facility is available

No surrender value is payable

Assignment facility is available

No loan is admissible.


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CHILDREN POLICY- SALIENT FEATURES

An Endowment Assurance SchemeProduct: PLI-children.place: Post-Office.

Price: Rs.xyz/month.promotion: Agentsfacilities: loan

A Policy holder of WLA or EA in PLI/RPLI shall be eligible for taking such Policyfor his/her child(ren) against his/her policy.

Minimum Age-5 Years.Maximum Age- 20 Years(The age of main policy holders should be below 45 years.)

Sum Assured limit Minimum- Rs. 20,000/- Maximum- Rs. 1,00,000/-. However,

the Sum Assured of Children policy should not exceed the Sum Assured of themain policy.

Insurance Cover starts from Date of acceptance of the proposal or payment of theIst premia in full, which ever is later.

A non-medical policy with full benefits.Assignment/Nomination facility available, as per POIF Rules.No loan facility against this policy, but can be made paid up in usual conditions tomain policy provided atleast 5 Years premia have been paid.

Sum Assured along with accrued bonus shall be payable on maturity or earlier ondeath of the Child(ren).

In even of death of main policy holder before the expiry of the Children Policy- nofurther premia shall be payable for the remaining term of the policy.


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CHILDREN POLICY PREMIA FOR SUM ASSURED OF Rs. 1000/-

Age atentry

Age at maturity

18 19 20 21 22 23 24 25

5 8.13 7.67 7.27 6.93 6.63 6.36 6.13 5.92

6 8.68 8.13 7.67 7.27 6.93 6.63 6.36 6.13

7 9.33 8.68 8.13 7.67 7.27 6.93 6.63 6.36

8 10.11 9.33 8.68 8.13 7.67 7.27 6.93 6.63

9 11.07 10.11 9.33 8.68 8.13 7.67 7.28 6.93

10 12.28 11.07 10.11 9.33 8.68 8.13 7.67 7.28

11 13.85 12.28 11.07 10.11 9.33 8.68 8.13 7.67

12 15.94 13.85 12.28 11.07 10.11 9.33 8.68 8.13

13 18.88 15.94 13.85 12.28 11.07 10.11 9.33 8.68

14 18.88 15.94 13.85 12.28 11.07 10.11 9.33

15 18.88 15.94 13.85 12.28 11.07 10.11

16 18.88 15.94 13.85 12.28 11.0717 18.88 15.94 13.85 12.28

18 18.88 15.94 13.85

19 18.88 15.94

20 18.88


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QuestionnairesQuestionnairesName :..

Organization: Designation:.

Age Group: Below 30 ( ) 30-45( ) Above 45( ).

1. Are you aware of the investment policies provided by post office?

A. Yes B. No

2. If yes how did you to know about the investment policies of post office?a) Relatives b) Agent c) Promotion d) Others.

3. If no why you are unaware about the investment policies of the post office?

4. Do you think postal investment are a secured way of investing your money?a) Yes b) No c) I dont know.

5. If you get a choice to invest in, which one would you prefer?a) Postal investment b) Others financial investment.

6. Why would you invest in the in option chosen by you?a) Loan b) Interest c) Service d) Security e) Others

7. According to you which of the following class invest in postal?a) Upper class b) Middle class c) Lower class.

8. In which policies do you like to invest your money?a) Public Provident Fund b) National Savings Certificate c) Kisan

Vikas Patra,d) Savings Bank Account e) Monthly Income Scheme f) RecurringDeposit Account,g) National Savings Scheme 1992 f) Post Office Time Deposit .

9. Wat made you invest postal?a. Tax saving benefits b. Saving c. Others services d. Due to

references.

10. Why do you think they are loosing interest in postal investments?a) No advertising b) Lack of govt. Support c) Less attractive, d) Less

speed.

11. What is your expectation from Post-Office?..................................................................................................................................

...........................................................................................................................................

..........

12. What suggestion would you like to give to post office?..................................................................................................................................

.............................................................................................................................................

...........

13. According to you does recession effect your investment?


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a) Yes b) No


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CURRENT SCENARIO


50

ORGANISATION CHART OF THE DEPARTME NT OF


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Security

Yes

73%

No

10%

Dont know

17%

Yes

No

Dont kn

Parameter Number of People

Yes 22

No 03

Dont know 05Total 30


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High Level, 3

Medal Level, 20

Low Level, 7

0

2

4

6

8

10

12

14

16

18

20

High Level Medal Level Low Level

Class Awarness

Serie

Permute Number of People

High Level 03

Middle Level 20

Low Level 07

Total 30


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Difference between postal investment and other investment:


53

Postal investment Other investment

1

2

3

4

5

6

This investment is played by post-office

Low Promotion strategies

Less people aware about postalinvestment.

Interest rate is low as compared toother investments.

Highly secured than othersinvestments.

It is govt. Organisation.

1

2

3

4

5

6

This investment is played by privateagencies. e.g. Bajaj Allianz, TataAIG etc.More Promotion strategies

People are more aware than postalinvestment.

Interest rate is high ascompared to postal investments.

Secured but not more than postalinvestments.

It is private organisation.


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CURRENT AFFAIRS

Promotion strategies of postal investment

No promotion strategies used.

Agent

Lack of awareness:

Due to improper promotional strategies.

Low advertising.

Government updation is not done forcefully.

Youth:

No proper investment to attract youth.

Easy money investment are not available.

Low rate of interest.

Low competitive.

Improper use of resources.

Highly security:

Government service.

Tax benefits.

Low interest rate to investment:


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Nega tive point of postal investment

Improper promotion.

Not proper planning

No advertisement. Service provide not on time.

Low rate of interest.

Lack of awareness among new generation

no satisfactory service comparatively

low impact of youth on

investment more time is required for processing.

Positive point

Highly secured In few money good service.

Save money save time.

No effect of recession

Government control

High network coverage

Consumer behavior:

The perception of client are varied diverting according to age difference.

Above 45-have the blind faith on investment in postal as it is a governmentcontrolled organization &operating since decades.

30-45 are aware but are confused into get more profit or to invest in saferway.

Youth:

they are the new comers and earn &like to get more profit in easy mannerare not interested in ancient process so prefer private investment.


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MARKET OPPORTUNITY

MACRO ENVIRONMENT

The macro environment is the external environment of a business over which thebusiness has no control. This includes all factors that can influence an organizationthat are out of its direct control. A company needs to be flexible to adapt to thechanges in the macro environment.

Socio cultural environment.Legal environment.Economic environment.Political environment.Technological environment.

Socio cultural environment:

Every society has a unique social structure comprising distinct set of behaviorpatterns, attitude, beliefs, taste and lifestyle. It is crucial for a company to understandthe social environment of the market. Where it intends to do business. This will helpthe postal to present its schemes in the sync with the social set up of the market.Social environment sets the tone for what is and what is not acceptable in terms of

the schemes, promotion, pricing and features. Socio cultural environment influencesthe consumer buying behavior.

Legal environment:

Laws, rules and regulations of a nation influence the way a postal can do businesstheir. The legal environment creates the framework within which postal need tooperate. Postal must be careful to keep within the law. In addition the postal needsto predict the legal changes that may take place which will affect the working

operation.

Economic environment:

Economic environment consist of the phase of the economic cycle (recession andexpansion) the economy is in, the income of the population, the inflation rate,interest rate, wage rates, degree of unemployment, government and consumerspending ect


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Political environment

Political stability is closely linked with the economic and legal environment. Labourlaws, economic policies, taxes, foreign investment policies, import and exportregulation.

Technological environment

This is the century of high end technological developments. Nearly everyday, someor the other technology development is taking place somewhere in the world. Postal

need to be aware of this developments and utilize them in enhancing their businessprocesses. Technological developments provide opportunities for postal to adoptnew breakthroughs, innovations, and inventions to cut costs and develop newschemes.\


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MICRO ENVIORNMENT

The micro environment is close to a postal and has a direct and immediate impacton the postal and its ability to serve its customers. A firm can influence its microenvironment through its various strategies.

ConsumersCompetitorsEmployeesMarketing intermediariesCompany

Consumers

Satisfying customer needs is the ultimate aim of Postal. So, the analysis of the needand wants of the customer is crucial for Postal.

Competitors:

According to the marketing concept, Postal investment can gain an edge in themarket by offering greater customer value and satisfaction than its competitors. Forthis, Postal needs to analyses the nature of competition prevailing in the market.Based on this analysis, Postal needs to design its competitive marketing strategy to

position its schemes strongly against those of the competitors in the minds of clients.

Employees:

Employees are the backbone of Postal. Quality of employees plays a crucial role inensuring success for Postal. Postal should employee the correct staff and providethem training to groom them for the particular job.

Marketing intermediaries:

Marketing intermediaries help Postal to promote, sell and distribute its schemes toclients. These marketing intermediaries form an important component of the Postal.Overall value delivery system.


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SUGESSION

Make Use Of Promotional Actives To Attract Maximum Number Of Clients.

Measures should be taken to create an awareness among the newgeneration.

Maximum use of advanced diversified technology.

Upcoming generation should be preferred in working authority.

Target should be given to the employees

Service should be given more importance.

Internet services should be made available for investment related available.


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CONCLUSSION

Low awareness because of no promotional activities considered.

Comparatively most secured investment

Huge network but lack of appropriate management

Due to comparatively low profit youth have less interest in investing as that ofold generation.


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